Private investments typically don’t trade on an exchange, so they can’t be bought and sold instantly. Because they are not as liquid as public investments that trade on an exchange, private investments often sell at a discount (called the liquidity discount) which may result in higher returns. By comparison, investors pay a premium for public investments and may receive a lower return in exchange for increased liquidity.
Until recently, it used to be that only the wealthy, or accredited investors like portfolio managers, were qualified to put money into private investments. But now, private investments are available to everyone in Canada. It may not be an appropriate choice for everyone’s portfolio, but at least now you are given the option.
Stability and true diversification. Private investments don’t take the place of your regular publicly traded ones, but they should be a part of your core investment strategy, further diversifying and stabilizing your portfolio. Just like you wouldn’t put all your money into one particular sector or type of security, you shouldn’t put all your money into the public markets. Take, for example, a pension fund that outperforms index benchmarks – those institutional portfolio managers get a lot of the yield from the private investments held within the fund.
It is an investment fund, but its underlying assets are income-generating real estate assets. It offers your portfolio exposure to the real estate sector.
Yes, our investment products are eligible for RRSP, RESP, TFSA and LIRA.
Find out how Equiton’s real estate investments can help you realize your financial goals.